Income and Investments Gambling Winnings Tax (How Much You Will Pay For Winning?) Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Ginita Wall Published Mar 3, 2023 - [Updated Dec 27, 2023] 3 min read Reviewed by Katharina Reekmans, Enrolled Agent Most people don’t think about taxes on their way to a racetrack or casino, but what might seem like nothing more than the chance to win some extra money actually has some tax implications. As is often the case, federal and state governments single out casino winnings for unique taxes of their own. Here is what you need to know about how gambling affects your taxes: How Much You Win Matters It’s important for you to know the thresholds that require income reporting by the payer. Winnings in the following amounts must be reported to the IRS by the payer: $600 or more at a horse track (if that is 300 times your bet) $1,200 or more at a slot machine or bingo game $1,500 or more in keno winnings (minus the amount you bet) $5,000 or more in poker tournament winnings (minus the amount you bet or buy-in price) Get started now All of these require giving the payer your Social Security number, as well as filling out IRS Form W2-G to report the full amount won. In most cases, the casino will take 24 percent off your winnings for IRS gambling taxes before paying you. Not all gambling winnings in the amounts above are subject to IRS Form W2-G. W2-G forms are not required for winnings from table games such as blackjack, craps, baccarat, and roulette, regardless of the amount. Note that this does not mean you are exempt from paying taxes or reporting the winnings on your taxes. Any and all gambling winnings must be reported to the IRS. It only means that you do not have to fill out Form W2-G for these particular table-based games. Reporting Smaller Winnings Even if you do not win as much as the amounts above, you are still legally obligated to claim your winnings at tax-time. You also need to report any awards or prize money you won during the year. Yes, even if you only win $10 sports gambling, you still technically have to report it (even if the casino didn’t). Your gambling income also includes the fair market value of prizes such as cars or trips. Gambling income plus your job income (and any other income) equals your total income. Fortunately, you do not necessarily have to pay taxes on all your winnings. Instead, if you itemize your deductions, you can claim your losses up to the amount of your winnings. But the amount of losses you deduct can’t be more than the amount of gambling income you reported on your tax return. *Note, under the tax reform law, the gambling loss limitation was modified. Prior to the tax reform law, taxpayers’ costs (like transportation and admission fees) could be claimed regardless of winnings. But beginning with the tax year 2018 (the taxes filed in 2019), all expenses in connection with gambling, not just gambling losses, are limited to gambling winnings. What About State Taxes? In addition to federal taxes payable to the IRS, many state governments tax gambling income as well. Each state has its own unique formulas and rules for gambling income, and some levy no gambling taxes at all. Some states charge a flat percentage, while others base the state tax on how much you won. TurboTax Has You Covered Don’t worry about knowing these tax rules. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind. Get started now Previous Post Tax Benefits Changing for Tax Year 2022 Next Post The Tax Deadline is Approaching: TurboTax Shares What You Need… Written by Ginita Wall More from Ginita Wall 489 responses to “Gambling Winnings Tax (How Much You Will Pay For Winning?)” Newer Comments » I am on disability from WA state I moved to Co. I have never filed taxes in Co.. I am tax exempt ..if I was to win a jackpot in Colorado how n to whom would I pay? Reply I won several jackpots on slots ranging from 1200 to 2800. I thought if the casino withheld state and federal taxes, then I did not have to report these jackpots on W2. What can I do at this point, as this took place over the past 3 years? Thanks. Reply If someone wins over $200,000 in illegal gambling over a course of two years (some deposited in the bank, and the rest on a debit/gift card), is that income taxable? Reply yes IT IS TAXABLE under “OTHERS” section (FORM 1040)and IRS will be suspicious if they see you buying a house, a car etc. and then you will be in DEEP TROUBLE.(ALSO BANKS, CREDIT CARD COMPANIES KEEP RECORD AND IF THEY SUSPECT OF ANY LARGE TRANSACTIONS, THEY WILL REPORT YOU TOO) Reply Hi I recently won 16,895’on a slot machine in az that is my latest win but I probally have a additional wg-2 slips amounting to about 14,000 for a toatalmofn30,895 but out of the 14,000 I probally spentb10,000 to win the 14 and probally another 2,000 to win the 16 so I have to pay taxes on ? And how long do u have to pay them Reply I play blackjack and rarely loose…I never make over 500 a session. I have two other jobs. Do I pay taxes Reply “rarely loose?” well you must be a mathematician or plain lucky but that’s another story, so if I were you I will see how much money I make at the END OF THE YEAR and report that amount in the “others” section in my 1040 form, also assuming that IS THE ONLY winnings since if you play slots and hit a jackpot over 1200 then is a different rule, or if you play poker and win over 5000 then is also a different rule Reply Hi, How does the tax for winnings apply to on-line casinos that are outside the United States? Those casinos don’t report to IRS and they don’t send W-2 or 1099. Thank you. Cassie Reply It would be the honor system. Chances are, you will not get caught unless it is a large amount or you do something dumb like try to pay cash for a car that is worth more than your reported income. Reply I have a friend who gambles quite a bit in Michigan at the slots in the casino. I believe I understand the federal ramifications. As to the State of Michigan MI-1040, can losses offset any or all of the winnings? Of course her losses exceed winnings. The gross winnings were included in federal AGI thus carried over to Michigan as taxable income because Michigan starts with federal AGI which includes the gross amount of winnings. I subtracted the amount of the gross winnings included in federal AGI on the MI-1040 as a “subtraction” line 20 on Schedule 1 “Additions and Subtractions” as a miscellaneous subtraction. Well, the Michigan Department of the Treasury wants to see all of her w-2s now, which I would assume would include the W-2G forms and her federal 1040 which clearly states “gambling winnings” on line 21 I believe it is. So far it seems like a grey area but I’m leaning toward taxable with no offset or netting allowed. Knowing the State of Michigan this is probably the case but I cannot find any specific language regarding this It’s going to cost her about a grand plus interest and probably penalties. Any suggestions or comments please. Should she just send in the W-2G’s and her federal return and pray? It is probably not worth paying a professional (one who charges a fee). Thanks. Reply I recently received a letter from the IRS, reminding me I owe. When I return the letter in agreement, what basically takes place. Just thought I would mention, I have been declared disabled,as of Feb 2013, as a result of Parkinson’s and could’nt tell you what has happened the last 5 years. Apparently, the drugs that I have been taking have contributed to much of my problem. Requip, Sinamet,etc. Any thoughts. Thanks. RC Reply From what I have read and witnessed, you are correct in surmising that certain PD medications can contribute to compulsive behavior. It is also possible that your recollections of the past 5 years have been affected by – and I hate to say this – the disease itself as cognitive skill loss is a drastic side effect of non-motor skill type Parkinson’s. If you were given to compulsive gambling as a medication side effect of dopaminergics, MAO inhibitors or dopamine agonists, it is equally likely that many of your losses were the result of online gambling where you or an computer specialist might be able to locate a record on your computer. Keep in mind that this explanation is not an affirmative defense with IRS, it just means that you might have lost more than you won and therefore have a legitimate deduction. At that point, you need to find a really good tax accountant. As a matter of fact, that is probably the first thing you should so. Best wishes Reply Hello, I live in Washington state but won slot machine winnings of 1494.00 in Oregon. In Washington we don’t do state tax filings. But in Oregon they do. So do I need to file a Oregon state tax? Reply I live in Washington State also.I go to Oregon with my wife to play slots & bingo.What happen when we win big at Slots or Bingo?No state income Tax in Washington.I’ll declare my total win on the W2G FORM and have the Casino take out 28% to the IRS. Reply I live in Texas and won a slot jackpot in Oklahoma. They gave me a W2G, but they did not take any taxes out because their computer was down. Do I have to file a return for OK and if so which return? Reply Winstar casino gave me a 1013 to file when I won $1835.00…what do I have to pay out when I file my taxes? Reply I live in the state of Michigan. My losses far exceeded my winnings. I have been told that for the past couple years there is a law that states that you can claim you are a casual gambler or the gambling can be called sessions, and your wins are limited to the amount you walked out of the casino with (after subtracting the amount that you brought into the casino with). This can be written off from the Michigan state taxes owed. However my tax person failed to put my total amount of winnings on line 21 for my federal return and now I am being audited because of it. I have given her the information from the IRS and she keeps writing to them saying I am a casual gambler, but when I get the response back & take it to her she says she can”t put that amount on line 21 or it would carry over to the state taxes and I could not do the “sessions or casual gambler” Have you any answers for me? have been doing my taxes with a reputable business & bought a “peace of mind insurance” and need to see this thru with them, however the IRS is saying I owe them $5888.00 & then they would report it to the state & I would owe them an additional amount. This is for the year 2010 & the taxes were done the same way for 2011 & my tax preparer says I can expect to go thru the same thing for 2011. Do you have any knowledge of this “sessions” or casual gambling? Reply Good thing you paid for the insurance. Lets hope they back it because as far as I know there is not “sessions.” I have been researching taxable income for winnings now for several years and this is the first I have herd of it. I would also consider getting a new tax person. Good luck. Reply First, you should pay careful attention that your peace of mind claim is being handled properly. If you have to “see this thru with them,” then it sounds as if they are honoring their insurance. Your insurance should cover up to $5500 of that $5888 bill. If your representatives get the bill down below $5500, then the insurance payment will cover your federal bill. If they can get that bill down even lower, then the savings can be applied to any additional state tax you might owe. Seems the total net amount of your winnings should have gone on Line 21 of the 1040 in the beginning. If not, then where did you put it on the original return? Instead of going through the same thing for 2011, you can simply file an amended return for 2011. The problem is that by filing an amended return now, which that company will do for free, you may lose your peace of mind insurance for the 2011 returns. Why? Because I believe the insurance claim starts when you get your first letter from the IRS. If you do an amended return for 2011 now, then you will probably never get a letter. Instead, you will get a bill, and that might not work for the peace of mind insurance. In other words, for the 2011 returns, see if filing amended returns ahead of any letters will cause you to lose your insurance. Finally, 2011 may be salvageable. Reply Gross gambling winnings go on form 1040 line 21, page one based upon the amount you received on the W-2Gs. Losses, up to the amount of winnings, is an itemized deduction on schedule A. If you cannot itemize, or if it does not make sense overall to itemize vs. standard deduction, not certain. TurboTax accepted this approach for itemizers and it is addressed on the official IRS website, If you simply net the amount of losses against winnings and put on line 21 page 1, you will be “hearing” from the IRS and will have a mess on your hands. there is NO a such thing as “sessions” tax law is very CLEAR: YOU WIN(for slot jackpots 1200 or more, for poker tables 5000 or more, for lottery 600 or more, etc) YOU have to pay taxes, so IF I were you I will EVERY TIME casino hand me a W-2G form I will ask the casino to WITHHOLD the taxes for me so I DONT GET ANY SURPRISES at tax time, or I don’t end up spending the money in something else SINCE THAT MONEY is uncles sam’s Reply Hi , Recently i went to casino and Gambled for the CRAPS table by investing 5000$ and i won 10,600, They have asked me the SSN and driving license i had given to them and they didnot provide me any Tax form and they didnot deduct they payed me back 10,600 . Should i need to file the tax for next year else what should i do next step ! Reply Girish, Just because they did not deduct any amount does not mean you are not responsible for taxes. I could be wrong but my understanding was that up until recently “table” gambling was not taxable. However, now it is. I would hold back the 25% federal and what ever your state tax is for your own safety. Last I checked here in Michigan it was 4.35%. However, keep in mind that you can deduct the $5000 you invested. Congrats on the winning. Reply My tax person made an error and listed my losses as my winnings. The state of California doesn’t care as long as you lose as much as you win. My tax person did deduct my loses to match my winnings. I wouldn’t care except the Federal Tax goes by my gross income for taxes on my ss and medicare.That error showed my gross income $700.00 more than it was and I owed IRS $1,483.00. How much did I over pay the IRS because of my tax person’s error? I sent the check to IRS before I noticed his error! Table gambling was always taxable. It is just on the honor system since there is no way of knowing/proving how much was actually won. You are not going to be taxed on $10,000 in chips if you spent $9500 to get it. OR worse, if you start the day with $15,000 chips and you cut your losses and cash out with $10,000, they certainly can’t tax you on that $10,000 when it was actually a $5000 loss. Three of us each put in $100 and won $6,000 on a slot machine, but the casino would only give us one of us a W2G form showing the winning of $6000. Actually the winning was $2,000 per person. Is there anyway we can each get a slip for $2,000 rather than having the one person getting charged for the entire tax. As we each live in seperate states it will make a difference on how we pay the tax Reply Ed, The casino only gave you one W2G, therefore, they have only notified the IRS of one person winning. The only way around that in the future is to create a gambling club and having the club be responsible for the winnings. At this point the person who received the W2G will have to be responsible for the taxes on this winning. Because only one person can claim the winning, the IRS could charge the other two recipients a “Gift” tax for their portion of the winnings. So I would be very careful who you tell about the winnings and how the taxes were done. Put something in writing that this was a mutual collaboration that the winnings would be split three ways. Just between you and I, I would have all parties sign it and date it the day before you won. But you didn’t hear that from me. Good luck Reply What if you lost your WG form the casino gave you? Reply Contact the Casino. They are required to keep a copy on file. Reply just call the casino they will mail you another one in less than a week, and some casinos will even EMAIL you one too, or you can just walk to the casino and ask for another one, it will take like 5 minutes for them Reply If I live in Texas, where we do not have state tax returns, but won around 1,200 at a casino in New Mexico where they do file state taxes, do I have to file a state tax return? (state income tax withheld is 0 on W-2G) Reply i won $1800 in vegas in april 2012 at a slot machine..no taxes were taken out at the time of winning. the casino gave me a receipt, which i have since lost. how do i go about claiming this on my taxes when the casino has yet to send me a w2G form or 1099? is it required for the casino to send this? Reply if i won 2692.00 at the horse track and im going through turbo tax where in turbo tax do i input those wages ????? Reply you MUST have a W-2G form so turbo tax will ask you for it when they say : ” do you have any gambling winnings?”… Reply As someone that works in a casino I can tell you there’s some inaccuracies in this article. First of all the only way you’ll receive a W2G from playing a slot machine is if you win $1,200 or more from a single spin (so winning 2 $600 jackpots does not get you a W2G). If this happens the machine will stop and you will be paid on the spot and give a W2G (don’t worry you’ll also get one in the mail). Also no taxes will be withheld unless you ask the casino to do so. The same goes for table games but you have to win $10,000 from a single bet. Lastly any transaction over $3,000 is recorded and any transaction over $10,000 is reported to the IRS. This used to be known as Regulation 6 now known as Title 31 it’s to prevent money laundering. One last thing, I think you meant to write Slot machine not Slow machine. Reply Thank you for posting this billyinvegas. Interesting stuff. Reply I won $10,000 on a scratch off had the 25% taken out when I file my return my refund is less once I enter my W2-G, I don’t understand this Reply MS Christina, The 25% is a base they are required to take. The taxable rate is based on your total winnings, your income and any other income you may have had. I am not sure what the current tax table is but you may have been charged 28% instead of 25% based on that total income. Reply the 25% is the FEDERAL tax but you still have to pay the STATE(from 3 to 5 % more depends of state) Reply Using TurboTax why do winnings claimed from a 1099-G reduce the refund amount even if identical losses are claimed? Reply I am not looking at your tax return but I would bet that your total winning put your income into a higher tax bracket. The deductions are not calculated until a total income has been determined. Therefore, even though your losses were the same as your winnings, your tax burden percentage did not change. Gotta love our tax system. I would contact turbo tax to insure that this is in fact correct. Reply Same thing happened to me for 2013 winnings at a church bazaar. Accountant said only winnings reported on a W2-G could be offset by losses. Out of luck if reported on a 1099. Sounds crazy. That’s why I’m poking around here looking for answers. Reply I was on holiday in Las Vegas in December 2012 and won $2.000 on Bingo at the Gold Coast Casino, they stopped $600 tax and gave me a receipt to show the tax paid. How do I claim it back now that I am back in England? Reply My Dad won on $1800 at the slots in Maryland and only received a receipt, he did not receive a W-2 G on the spot The casino did not take taxes although he asked them to nor have they supplied a W-2 G via mail. I know he has to pay Fed taxes and to the state he resides, does he have to pay state taxes to Maryland as well? Reply I reside in Washington, DC for state tax purposes but gamble in Maryland. I hit a taxable jackpot of $2K and was going to have the casino deduct fed taxes until the attendant stated it would be at 30% rather than the 25% I thought customary so I did not have them take the taxes out. QUESTION: Can casinos arbitrarily assign a tax rate? Secondly, residing in DC, will I be liable for state tax on taxable winnings? We use Turbo Tax. Thanks. Reply hi, can gambling winnings affect my fafsa amount i can recieve? Reply Your grant and loans through FAFSA take the prior years tax information so if it was a substantial source of income then you may not qualify for grants in the year after. You should still be ok for the loan amount though Reply Absolutely! It can be a nightmare for financial aid purposes! For Financial Aid purposes (FAFSA & the College), they only look at the AGI (Adjusted Gross Income). They do NOT consider the losses claimed on your Schedule A-Itemized Deductions form; so, if you won many slot jackpots during the year, and the total winnings (shown on W-2g) forms was, say, $50,000, then your AGI for Financial Aid purposes will include these winnings, even if you had $50,000 in losses claimed on Schedule A (Itemized Deductions). If you earn $60,000/yr at work, your AGI will be $110,000; likely knocking you out of receiving aid. This is an unfortunate consequence. I had a special meeting with FA officer, and they told me to “pound sand;” AGI is AGI. They can’t consider your losses on Schedule A. Sucks! Reply Not true in the state of michigan. I just won my case against them in court. Am I right–The law for 1099’s on gambling winnings changed in 2012, now increasing the amount of reportable winnings from $600 to $1200. However, my husband and I won several smaller jackpots of $600 or more on Indian casino Raffle machines before the law changed. Are these winnings under $1200 still taxable?The casino gave us W-2 G’s on all of them. Reply I won two fantasy football CBS sportsline leagues in December of 2012. CBS did not allow me to claim the prize until January 24, 2013. I will not recieve my prize until approximately March. Do I claim my winnings on my 2012 tax return or 2013 tax return? Thanks so much! Reply If I paid federal taxes in the state of Indiana on a winning of $10,000. Do I pay federal taxes also in the state of Ohio on all that I won? If so why? Reply Hello. I won nearly $18,000 in 2012 and paid zero taxes at the casino. I was also unemployed the entire year of 2012. I used my savings to make my house payments and my interest on my house was nearly $11,000! I have documented losses of around $20,000. I also gave around $1000 to my church and around $400 to Compassion International. Any idea of how much I may owe? I am worried sick about it. Reply Correct me if I’m wrong. But, your losses exceed your winnings. It should be a wash, and your tax burden should be $0. Reply Hi, I lost $11,000 earlier this year playing slot machines. A few days ago I won $20,000 dollars. How much might I owe in taxes? Also,does the IRS have a payment program over time since I am on a fixed income. ThankYou Anne Reply Scenario #1: You CAN DOCUMENT the $11,000 in losses for 2013 FORM 1040 Fixed Income Assumed to be Non-taxable*…………………………………$ 0.00 Gambling Winnings Line 21……………………………………….. $20,000 Adjusted Gross Income (AGI)………….$20,000 Itemized Deductions From Schedule A (Your $11,000 in gambling losses, subject to a 2% AGI limitation = $11,000 – ($11,000 X 0.02) = $11,000 – $220 = Line 40……………….$10,780 Personal Exemption Line 42………….$ 3,900 Taxable Income is $20,000 AGI, minus $10,780, minus $3,900, equals Taxable Income Line 43………$ 5,320 Tax Due From 2013 Tax Table, Pub. 17, page 251, is**………………….$ 533 Scenario #2: You CANNOT DOCUMENT the $11,000 in losses for 2013 Fixed Income Assumed to be Non-taxable*…………………………………$ 0.00 Gambling Winnings Line 21……………………………………….. $20,000 Adjusted Gross Income (AGI)………….$20,000 Standard Deduction………………………$ 6,100 Personal Exemption Line 42………….$ 3,900 Taxable Income is $20,000 AGI, minus $6100, minus $3,900, equals Taxable Income Line 43………$ 10,000 Tax Due From 2013 Tax Table, Pub. 17, page 251, is**………………….$ 1,058 *You did not post the circumstances of your fixed income, your $20,000 win, or your age, or marital status. Your gambling winnings of $20,000 might make some of your fixed income taxable. Need more information. The IRS does have a payment program. Links: Pub 17 for 2013: http://www.irs.gov/pub/irs-pdf/p17.pdf so here is the thing: did you won a jackpot of 18000? AT ONCE(single jackpot) or YOU THINK you won that amount lets say in the current years, so remember irs is very clear: slot machine jackpot over 1200 YOU pay taxes, Lottery over 600 YOU pay taxes, every time you get a W-2G form(wining gambling form) you have to pay taxes Reply Hi there, I have had several jackpots paid to me through this year. On most of them I paid the taxes on the spot before they paid me. But a couple I didn’t. Anyways I absolutely lost more than I won for the year. I am a full time student, so there is no income except student loans. Should I expect to get the taxes I paid back since my losses were more than the wins? Reply I was a stay at home dad this year, and have no income for 2012. I do have 2 jackpots totaling approx. $2800. I also have a dependent under age 16, (we have 4 kids, my fiancee would claim the other 3) that I could claim and a tax estimator said I would receive a return. Can I legally claim a dependent with no regular income and only gambling income? Since I had no regular income, would the IRS still tax these jackpots? How would that work? Also, can our children be split, dependent wise? (noting that we all lived in the same household for 2012,) Reply I am on disability and Turbotax is showing that I owe nothing since my only earned income was the 1600 I had won at the casino. So do I still need to file? and if so why? Reply i won 20,000 in casino in one state and live in another. they took out federal and state taxes. for which state did they take taxes? and do i get to claim those taxes? Reply Can a college student with a 1098-T use his or her Form w-2g to collect a refund? Reply Hi Shawn, I am not sure how much your education expenses, but you can deduct them and you may possibly get a tax refund. You have to file a tax return since you have a W-2G. You can prepare your taxes with TurboTax for free so you can’t lose. You may get a nice tax refund. Happy filing! Thank you, Lisa Greene-Lewis Reply How do I file my Ca. state return for 2009? I was on dissability the entire year so I have no tax liability for wages earned, however, I have $19,548.00 in casino winnings. With no taxable earned wages can I still show my gambling losses to equal my winnings? Reply Hi Lynn, You still need to prepare your Federal Tax return. Your casino winnings will go on the federal tax return and if you can claim itemized deductions instead of standard deductions you can claim your losses or how much you put spent gambling there. Information from your federal tax return will transfer to your state tax return. TurboTax walks you through the questions necessary to complete your tax return. You can purchase 2009 TurboTax software at http://turbotax.intuit.com/personal-taxes/past-years-products.jsp#tax_year_2009 Hurry and file you only have 3 tax years to claim a tax refund with the IRS. Thank you, Lisa Greene-Lewis Reply I reside in the state of Ohio and won $1500.00 on a slot machine in PA. Will I be liable for any taxes to the State of PA ? Reply Hi I won money on the slots at the airport just before I came home to the UK and the machine stopped once I won and the assisant had to come with 2 others and they taxed me 30% of the win was news to me and a surpise, as I do not live in the US and I am a UK citizen who come I got taxed? I have won before and was never taxed so why this time? my bet was $2 and I won £1200 or ($1198) excluding my stake thanks for your help x Reply I had lost my W-2 forms in a move from one house to another. I didn’t not file the amount I won do to not having the information. Now I have a letter from the IRS telling how much I owe, I want to send the letter back with my losses. What information will I need in the letter? Since all of my losses are not able to be tracked. Reply I sometimes go gambling when out of town on business for my own company. Can I have my company ‘win’ the money if I win? Reply Hi Richard, Unfortunately you have to claim your winnings on your personal taxes. Gambling winnings would not be considered income related to your business purpose. Thank you, Lisa Greene-Lewis Reply hello. if i paid taxes on four slot pay outs (i paid state and federal irs taxes at the casino before being paid do i have to report anything else on other forms come tax time? will i have to pay any more taxes . also i am not claming any losses. thanks for your time? Reply If the casino deducts 25% from the gross winnings before paying you the net. Then how do you get credit for this when filing your end of year 1040 …I don’t see any place on the W2G that says how much was withheld. It only shows the gross amount? Is the casino required to send you a 1099 or something? Reply Hi Robert, Typically the 25% tax will be withheld before you’re paid so you will not see a credit for it. Your winnings are added to any other income you’ve earned on your tax return. You can deduct your losses or the amount you put in to gamble up to your winnings as an itemized deduction. Thank you, Lisa Greene-Lewis Reply you do NOT get “credit” for 25%, that is something YOU MUST pay to uncle sam if you win unless you overpaid at the time the casino gave you the W-2G(and don’t forget the state too so you still might owe more) Reply I paid 6,000 in taxes for 25% or so for about 15,000 in winnings. I didn’t pay 3,000 on other jackpots. I got about 15 in 4 months! Put it all back though:( Do I get the difference in my tax refund since I paid 6,000 and only didn’t pay 3,000? Or is there a chance I will owe some of the 3,000 I didn’t pay? Reply Hi Brett, It also depends on your other income. You have to include all of your gambling winnings with your other income and then you are taxed at the tax rate of your combined income minus your tax deductions and credits. Without knowing all of your details I can’t say for sure. You can deduct your losses up to your winnings as an itemized deduction. Thank you, Lisa Greene-Lewis Reply here is what will happens: You OVERPAID ONE of your W-2G(which is good irs WILL refund) BUT and here the catch since YOU DID NOT paid the other ones so now FROM EVERY W-2G that you have you have to pay ALSO the FULL amount 25 % Federal PLUS your State(depending where you live usually from 3 to 5%more), so to make it easy get a calculator and start to enter EVERY JACKPOT FROM THOSE W-2G FORMS that you did NOT paid taxes and see and cross your finger that they don’t add to more of what you ALREADY OVERPAID Reply Why is it that turbo tax says I owe more money after entering my w2gs when my losses are equal (actually above) my winnings. Before I put in my w2s I owed $500.00. After entering my w2g and also my losses I owe alot more. Why does it not even out? Reply Hi Dan, Your losses should have been entered as an itemized deduction, however your eligible losses are limited and may not be more than gambling income reported on your tax return. You also need to check and see if your itemized deductions are more than the standard deductions. If not, you will get the standard deduction, which will not include the gambling losses. Also keep in mind that tax deductions from taxable income do not reduce your tax liability dollar for dollar. TurboTax is in line with all IRS tax laws. Please see IRS Topic 419 for more information regarding gambling losses http://www.irs.gov/taxtopics/tc419.html If you still need more help, our tax experts are available via chat and phone. Thank you, Lisa Greene-Lewis http://blog.turbotax.intuit.com Reply Hi ! I have won a jackpot on a slot machine. The amount is $1337.00. So the tax on that jackpot would be 25% of this amount? Thanks! Reply Hi Debbie, Casinos will typically take 25% out of the winnings prior to paying you. The $1,337 will be added to your other income and will be taxed at your tax rate based on your total income. Thank you, Lisa Greene-Lewis http://blog.turbotax.intuit.com Reply Ive never had a casino take a dime before paying me my jackpot. Even though I have lost much more than I win, I am paying Federal taxes on my winnings. The state of Ca. does not consider I won when I lost more than I won, but the Federal charges taxes even though I lost more than I won. Is this because the Federal taxes me on my total gross income before deductions?? Thank you. Jamie Reply Hi Mr Rooster, If you are deducting your losses up to your winnings as itemized deductions, you have to remember that itemized deductions are not dollar-for-dollar deductions. They reduce your taxable income, but not your tax liability dollar-for-dollar. Thank you, Lisa Greene-Lewis Reply One glaring error in your article – “you will owe the same percentage to the IRS on a $100,000 jackpot as a $10,000 one.” Since gambling winnings are considered the same as ordinary income, for the great majority of people the larger jackpot will put them in a higher bracket. Reply Hi Gary, You are correct when you say gambling winnings are considered in the rest of your ordinary income and it may put people in a higher tax bracket, however the article refers to IRS rules that state “income tax is withheld at a flat 25% rate from certain gambling winnings” per IRS publication 505 http://www.irs.gov/publications/p505/ch01.html#en_US_2012_publink10007297 Thank you, Lisa Greene-Lewis http://blog.turbotax.intuit.com Reply Lisa, the difference between withholding and tax owed is important. You either pay or get refunded that difference, after filing your tax return. There’s a small penalty for “substantial under-reporting” if you owe more than $1,000 at tax time, so you would have to make an “estimated tax” payment if the gambling winnings will make you owe more than that in tax. The 25% withholding rate is unlikely to be equal to the amount actually owed: depending on the size of the win and the taxpayer’s other income, the gambling winnings are likely to be in a higher income tax bracket. If someone 82 years old won 2600.00 at a casino slot machine, do they have to pay taxes on that money Reply Hi Becky, It depends on any other income and their deductions, but they should still file taxes on their winnings as gambling winnings are fully taxable and are required to be reported on their tax return. They can also deduct gambling losses if they itemize deductions, but the losses deducted cannot exceed gambling income. Thank you, Lisa Greene-Lewis Reply Probably not. Depends on how the $2600 affects the “Combined Income.” In general, if the combined income for a single taxpayer is more than $25,000, then he/she may have income tax due. See: http://www.ssa.gov/planners/taxes.htm Your adjusted gross income + Nontaxable interest + ½ of your Social Security benefits = Your “combined income” Reply Becky T., I jumped ahead on my answer above. Combined Income has to do with whether some of an 82-year-old’s Social Security would become taxable because of the $2600 slot machine win. For 2013, if the 82-year old only receives Social Security, and the $2600 slot win, and has no other income, then he/she will not pay any tax on that $2600 win, and will not be required to file a tax return. If the casino withheld tax on that $2600, then the 82-year old should file a tax return in order to get a refund of that amount withheld. Also, I strongly recommend that this person file a tax return for reasons I have stated in other posts on this webpage. YES, you can be 300 years old and live under a bridge, irs care IF YOU WIN, YOU PAY TAXES Reply so if I won and paid my taxes can I declare my losses? how much do I need to loose to recoup the taxes I paid out? I won 2000 in Ohio and they took 6% state tax and 25% federal Reply I recently won 2600$ on a horse betting site, my wager was only 1$. How much will I be taxed? Reply Hi Daniel, You have to input your winnings as other income and your wager as an itemized deduction. TurboTax will figure out how much you will be taxed based on other income, deductions, and your tax bracket. Thank you, Lisa Greene-Lewis http://blog.turbotax.intuit.com Reply They are not required to give out the forms for table games because it is virtually impossible to determine (and prove) how much you actually won. You could walk up to the cashier with $25000 in chips…but how can they know that you didn’t shell out $30,000 to get those chips and lose $5000? And even if you did win, they still can’t make you pay taxes on the full $25,000 since you they know you spent SOMETHING to start off. It would make gambling a logistical nightmare if players required receipts every time they get down to their last chip and grudgingly plunk down another $500 to reload their stack at the blackjack table. Reply Hi, Yes, per the post they are not required to give you a W2-G for certain table games, however you are required to report all gambling winnings. If you itemize your deductions, you can deduct your losses on schedule A. Please see IRS http://www.irs.gov/newsroom/article/0,,id=108277,00.html Thank you, Lisa Lewis http://blog.turbotax.intuit.com Reply my auntie won $800k at an Indian casino recently in california. she got a check for 600K in the end , does she get taxed on the 600K or 800k? she did receive on site $40k initially then the 600k, she assumed that the taxes were deducted when she got the 600k since the check wasn’t for 800k but found out she still has to pay taxes. she is confused on what amount she will be taxed on and how much will she how to put aside for taxes? please advise. thanks! Reply I need to know cab I deduct cost of dentures?? I would like to finish taxes having a problem because i started several months ago trying to get back to them a getting them done!!! Reply Hi Don, Yes you can, however you to be eligible to itemize your deductions(itemized deductions have to exceed standard deductions) and your medical expenses have to be more than 7.5% of your adjusted gross income. TurboTax will guide you through the calculations and will choose the deductions (standard or itemized) you are eligble for. Happy filing! Thank you, Lisa Greene-Lewis Reply Newer Comments » Leave a ReplyCancel reply Browse Related Articles Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed? Taxes 101 IRS Name Changes for Businesses in Just a Few Steps Student Athlete What are Alston Awards and the Tax Implications?
I am on disability from WA state I moved to Co. I have never filed taxes in Co.. I am tax exempt ..if I was to win a jackpot in Colorado how n to whom would I pay? Reply
I won several jackpots on slots ranging from 1200 to 2800. I thought if the casino withheld state and federal taxes, then I did not have to report these jackpots on W2. What can I do at this point, as this took place over the past 3 years? Thanks. Reply
If someone wins over $200,000 in illegal gambling over a course of two years (some deposited in the bank, and the rest on a debit/gift card), is that income taxable? Reply
yes IT IS TAXABLE under “OTHERS” section (FORM 1040)and IRS will be suspicious if they see you buying a house, a car etc. and then you will be in DEEP TROUBLE.(ALSO BANKS, CREDIT CARD COMPANIES KEEP RECORD AND IF THEY SUSPECT OF ANY LARGE TRANSACTIONS, THEY WILL REPORT YOU TOO) Reply
Hi I recently won 16,895’on a slot machine in az that is my latest win but I probally have a additional wg-2 slips amounting to about 14,000 for a toatalmofn30,895 but out of the 14,000 I probally spentb10,000 to win the 14 and probally another 2,000 to win the 16 so I have to pay taxes on ? And how long do u have to pay them Reply
I play blackjack and rarely loose…I never make over 500 a session. I have two other jobs. Do I pay taxes Reply
“rarely loose?” well you must be a mathematician or plain lucky but that’s another story, so if I were you I will see how much money I make at the END OF THE YEAR and report that amount in the “others” section in my 1040 form, also assuming that IS THE ONLY winnings since if you play slots and hit a jackpot over 1200 then is a different rule, or if you play poker and win over 5000 then is also a different rule Reply
Hi, How does the tax for winnings apply to on-line casinos that are outside the United States? Those casinos don’t report to IRS and they don’t send W-2 or 1099. Thank you. Cassie Reply
It would be the honor system. Chances are, you will not get caught unless it is a large amount or you do something dumb like try to pay cash for a car that is worth more than your reported income. Reply
I have a friend who gambles quite a bit in Michigan at the slots in the casino. I believe I understand the federal ramifications. As to the State of Michigan MI-1040, can losses offset any or all of the winnings? Of course her losses exceed winnings. The gross winnings were included in federal AGI thus carried over to Michigan as taxable income because Michigan starts with federal AGI which includes the gross amount of winnings. I subtracted the amount of the gross winnings included in federal AGI on the MI-1040 as a “subtraction” line 20 on Schedule 1 “Additions and Subtractions” as a miscellaneous subtraction. Well, the Michigan Department of the Treasury wants to see all of her w-2s now, which I would assume would include the W-2G forms and her federal 1040 which clearly states “gambling winnings” on line 21 I believe it is. So far it seems like a grey area but I’m leaning toward taxable with no offset or netting allowed. Knowing the State of Michigan this is probably the case but I cannot find any specific language regarding this It’s going to cost her about a grand plus interest and probably penalties. Any suggestions or comments please. Should she just send in the W-2G’s and her federal return and pray? It is probably not worth paying a professional (one who charges a fee). Thanks. Reply
I recently received a letter from the IRS, reminding me I owe. When I return the letter in agreement, what basically takes place. Just thought I would mention, I have been declared disabled,as of Feb 2013, as a result of Parkinson’s and could’nt tell you what has happened the last 5 years. Apparently, the drugs that I have been taking have contributed to much of my problem. Requip, Sinamet,etc. Any thoughts. Thanks. RC Reply
From what I have read and witnessed, you are correct in surmising that certain PD medications can contribute to compulsive behavior. It is also possible that your recollections of the past 5 years have been affected by – and I hate to say this – the disease itself as cognitive skill loss is a drastic side effect of non-motor skill type Parkinson’s. If you were given to compulsive gambling as a medication side effect of dopaminergics, MAO inhibitors or dopamine agonists, it is equally likely that many of your losses were the result of online gambling where you or an computer specialist might be able to locate a record on your computer. Keep in mind that this explanation is not an affirmative defense with IRS, it just means that you might have lost more than you won and therefore have a legitimate deduction. At that point, you need to find a really good tax accountant. As a matter of fact, that is probably the first thing you should so. Best wishes Reply
Hello, I live in Washington state but won slot machine winnings of 1494.00 in Oregon. In Washington we don’t do state tax filings. But in Oregon they do. So do I need to file a Oregon state tax? Reply
I live in Washington State also.I go to Oregon with my wife to play slots & bingo.What happen when we win big at Slots or Bingo?No state income Tax in Washington.I’ll declare my total win on the W2G FORM and have the Casino take out 28% to the IRS. Reply
I live in Texas and won a slot jackpot in Oklahoma. They gave me a W2G, but they did not take any taxes out because their computer was down. Do I have to file a return for OK and if so which return? Reply
Winstar casino gave me a 1013 to file when I won $1835.00…what do I have to pay out when I file my taxes? Reply
I live in the state of Michigan. My losses far exceeded my winnings. I have been told that for the past couple years there is a law that states that you can claim you are a casual gambler or the gambling can be called sessions, and your wins are limited to the amount you walked out of the casino with (after subtracting the amount that you brought into the casino with). This can be written off from the Michigan state taxes owed. However my tax person failed to put my total amount of winnings on line 21 for my federal return and now I am being audited because of it. I have given her the information from the IRS and she keeps writing to them saying I am a casual gambler, but when I get the response back & take it to her she says she can”t put that amount on line 21 or it would carry over to the state taxes and I could not do the “sessions or casual gambler” Have you any answers for me? have been doing my taxes with a reputable business & bought a “peace of mind insurance” and need to see this thru with them, however the IRS is saying I owe them $5888.00 & then they would report it to the state & I would owe them an additional amount. This is for the year 2010 & the taxes were done the same way for 2011 & my tax preparer says I can expect to go thru the same thing for 2011. Do you have any knowledge of this “sessions” or casual gambling? Reply
Good thing you paid for the insurance. Lets hope they back it because as far as I know there is not “sessions.” I have been researching taxable income for winnings now for several years and this is the first I have herd of it. I would also consider getting a new tax person. Good luck. Reply
First, you should pay careful attention that your peace of mind claim is being handled properly. If you have to “see this thru with them,” then it sounds as if they are honoring their insurance. Your insurance should cover up to $5500 of that $5888 bill. If your representatives get the bill down below $5500, then the insurance payment will cover your federal bill. If they can get that bill down even lower, then the savings can be applied to any additional state tax you might owe. Seems the total net amount of your winnings should have gone on Line 21 of the 1040 in the beginning. If not, then where did you put it on the original return? Instead of going through the same thing for 2011, you can simply file an amended return for 2011. The problem is that by filing an amended return now, which that company will do for free, you may lose your peace of mind insurance for the 2011 returns. Why? Because I believe the insurance claim starts when you get your first letter from the IRS. If you do an amended return for 2011 now, then you will probably never get a letter. Instead, you will get a bill, and that might not work for the peace of mind insurance. In other words, for the 2011 returns, see if filing amended returns ahead of any letters will cause you to lose your insurance. Finally, 2011 may be salvageable. Reply
Gross gambling winnings go on form 1040 line 21, page one based upon the amount you received on the W-2Gs. Losses, up to the amount of winnings, is an itemized deduction on schedule A. If you cannot itemize, or if it does not make sense overall to itemize vs. standard deduction, not certain. TurboTax accepted this approach for itemizers and it is addressed on the official IRS website, If you simply net the amount of losses against winnings and put on line 21 page 1, you will be “hearing” from the IRS and will have a mess on your hands.
there is NO a such thing as “sessions” tax law is very CLEAR: YOU WIN(for slot jackpots 1200 or more, for poker tables 5000 or more, for lottery 600 or more, etc) YOU have to pay taxes, so IF I were you I will EVERY TIME casino hand me a W-2G form I will ask the casino to WITHHOLD the taxes for me so I DONT GET ANY SURPRISES at tax time, or I don’t end up spending the money in something else SINCE THAT MONEY is uncles sam’s Reply
Hi , Recently i went to casino and Gambled for the CRAPS table by investing 5000$ and i won 10,600, They have asked me the SSN and driving license i had given to them and they didnot provide me any Tax form and they didnot deduct they payed me back 10,600 . Should i need to file the tax for next year else what should i do next step ! Reply
Girish, Just because they did not deduct any amount does not mean you are not responsible for taxes. I could be wrong but my understanding was that up until recently “table” gambling was not taxable. However, now it is. I would hold back the 25% federal and what ever your state tax is for your own safety. Last I checked here in Michigan it was 4.35%. However, keep in mind that you can deduct the $5000 you invested. Congrats on the winning. Reply
My tax person made an error and listed my losses as my winnings. The state of California doesn’t care as long as you lose as much as you win. My tax person did deduct my loses to match my winnings. I wouldn’t care except the Federal Tax goes by my gross income for taxes on my ss and medicare.That error showed my gross income $700.00 more than it was and I owed IRS $1,483.00. How much did I over pay the IRS because of my tax person’s error? I sent the check to IRS before I noticed his error!
Table gambling was always taxable. It is just on the honor system since there is no way of knowing/proving how much was actually won. You are not going to be taxed on $10,000 in chips if you spent $9500 to get it. OR worse, if you start the day with $15,000 chips and you cut your losses and cash out with $10,000, they certainly can’t tax you on that $10,000 when it was actually a $5000 loss.
Three of us each put in $100 and won $6,000 on a slot machine, but the casino would only give us one of us a W2G form showing the winning of $6000. Actually the winning was $2,000 per person. Is there anyway we can each get a slip for $2,000 rather than having the one person getting charged for the entire tax. As we each live in seperate states it will make a difference on how we pay the tax Reply
Ed, The casino only gave you one W2G, therefore, they have only notified the IRS of one person winning. The only way around that in the future is to create a gambling club and having the club be responsible for the winnings. At this point the person who received the W2G will have to be responsible for the taxes on this winning. Because only one person can claim the winning, the IRS could charge the other two recipients a “Gift” tax for their portion of the winnings. So I would be very careful who you tell about the winnings and how the taxes were done. Put something in writing that this was a mutual collaboration that the winnings would be split three ways. Just between you and I, I would have all parties sign it and date it the day before you won. But you didn’t hear that from me. Good luck Reply
just call the casino they will mail you another one in less than a week, and some casinos will even EMAIL you one too, or you can just walk to the casino and ask for another one, it will take like 5 minutes for them Reply
If I live in Texas, where we do not have state tax returns, but won around 1,200 at a casino in New Mexico where they do file state taxes, do I have to file a state tax return? (state income tax withheld is 0 on W-2G) Reply
i won $1800 in vegas in april 2012 at a slot machine..no taxes were taken out at the time of winning. the casino gave me a receipt, which i have since lost. how do i go about claiming this on my taxes when the casino has yet to send me a w2G form or 1099? is it required for the casino to send this? Reply
if i won 2692.00 at the horse track and im going through turbo tax where in turbo tax do i input those wages ????? Reply
you MUST have a W-2G form so turbo tax will ask you for it when they say : ” do you have any gambling winnings?”… Reply
As someone that works in a casino I can tell you there’s some inaccuracies in this article. First of all the only way you’ll receive a W2G from playing a slot machine is if you win $1,200 or more from a single spin (so winning 2 $600 jackpots does not get you a W2G). If this happens the machine will stop and you will be paid on the spot and give a W2G (don’t worry you’ll also get one in the mail). Also no taxes will be withheld unless you ask the casino to do so. The same goes for table games but you have to win $10,000 from a single bet. Lastly any transaction over $3,000 is recorded and any transaction over $10,000 is reported to the IRS. This used to be known as Regulation 6 now known as Title 31 it’s to prevent money laundering. One last thing, I think you meant to write Slot machine not Slow machine. Reply
I won $10,000 on a scratch off had the 25% taken out when I file my return my refund is less once I enter my W2-G, I don’t understand this Reply
MS Christina, The 25% is a base they are required to take. The taxable rate is based on your total winnings, your income and any other income you may have had. I am not sure what the current tax table is but you may have been charged 28% instead of 25% based on that total income. Reply
the 25% is the FEDERAL tax but you still have to pay the STATE(from 3 to 5 % more depends of state) Reply
Using TurboTax why do winnings claimed from a 1099-G reduce the refund amount even if identical losses are claimed? Reply
I am not looking at your tax return but I would bet that your total winning put your income into a higher tax bracket. The deductions are not calculated until a total income has been determined. Therefore, even though your losses were the same as your winnings, your tax burden percentage did not change. Gotta love our tax system. I would contact turbo tax to insure that this is in fact correct. Reply
Same thing happened to me for 2013 winnings at a church bazaar. Accountant said only winnings reported on a W2-G could be offset by losses. Out of luck if reported on a 1099. Sounds crazy. That’s why I’m poking around here looking for answers. Reply
I was on holiday in Las Vegas in December 2012 and won $2.000 on Bingo at the Gold Coast Casino, they stopped $600 tax and gave me a receipt to show the tax paid. How do I claim it back now that I am back in England? Reply
My Dad won on $1800 at the slots in Maryland and only received a receipt, he did not receive a W-2 G on the spot The casino did not take taxes although he asked them to nor have they supplied a W-2 G via mail. I know he has to pay Fed taxes and to the state he resides, does he have to pay state taxes to Maryland as well? Reply
I reside in Washington, DC for state tax purposes but gamble in Maryland. I hit a taxable jackpot of $2K and was going to have the casino deduct fed taxes until the attendant stated it would be at 30% rather than the 25% I thought customary so I did not have them take the taxes out. QUESTION: Can casinos arbitrarily assign a tax rate? Secondly, residing in DC, will I be liable for state tax on taxable winnings? We use Turbo Tax. Thanks. Reply
Your grant and loans through FAFSA take the prior years tax information so if it was a substantial source of income then you may not qualify for grants in the year after. You should still be ok for the loan amount though Reply
Absolutely! It can be a nightmare for financial aid purposes! For Financial Aid purposes (FAFSA & the College), they only look at the AGI (Adjusted Gross Income). They do NOT consider the losses claimed on your Schedule A-Itemized Deductions form; so, if you won many slot jackpots during the year, and the total winnings (shown on W-2g) forms was, say, $50,000, then your AGI for Financial Aid purposes will include these winnings, even if you had $50,000 in losses claimed on Schedule A (Itemized Deductions). If you earn $60,000/yr at work, your AGI will be $110,000; likely knocking you out of receiving aid. This is an unfortunate consequence. I had a special meeting with FA officer, and they told me to “pound sand;” AGI is AGI. They can’t consider your losses on Schedule A. Sucks! Reply
Am I right–The law for 1099’s on gambling winnings changed in 2012, now increasing the amount of reportable winnings from $600 to $1200. However, my husband and I won several smaller jackpots of $600 or more on Indian casino Raffle machines before the law changed. Are these winnings under $1200 still taxable?The casino gave us W-2 G’s on all of them. Reply
I won two fantasy football CBS sportsline leagues in December of 2012. CBS did not allow me to claim the prize until January 24, 2013. I will not recieve my prize until approximately March. Do I claim my winnings on my 2012 tax return or 2013 tax return? Thanks so much! Reply
If I paid federal taxes in the state of Indiana on a winning of $10,000. Do I pay federal taxes also in the state of Ohio on all that I won? If so why? Reply
Hello. I won nearly $18,000 in 2012 and paid zero taxes at the casino. I was also unemployed the entire year of 2012. I used my savings to make my house payments and my interest on my house was nearly $11,000! I have documented losses of around $20,000. I also gave around $1000 to my church and around $400 to Compassion International. Any idea of how much I may owe? I am worried sick about it. Reply
Correct me if I’m wrong. But, your losses exceed your winnings. It should be a wash, and your tax burden should be $0. Reply
Hi, I lost $11,000 earlier this year playing slot machines. A few days ago I won $20,000 dollars. How much might I owe in taxes? Also,does the IRS have a payment program over time since I am on a fixed income. ThankYou Anne Reply
Scenario #1: You CAN DOCUMENT the $11,000 in losses for 2013 FORM 1040 Fixed Income Assumed to be Non-taxable*…………………………………$ 0.00 Gambling Winnings Line 21……………………………………….. $20,000 Adjusted Gross Income (AGI)………….$20,000 Itemized Deductions From Schedule A (Your $11,000 in gambling losses, subject to a 2% AGI limitation = $11,000 – ($11,000 X 0.02) = $11,000 – $220 = Line 40……………….$10,780 Personal Exemption Line 42………….$ 3,900 Taxable Income is $20,000 AGI, minus $10,780, minus $3,900, equals Taxable Income Line 43………$ 5,320 Tax Due From 2013 Tax Table, Pub. 17, page 251, is**………………….$ 533 Scenario #2: You CANNOT DOCUMENT the $11,000 in losses for 2013 Fixed Income Assumed to be Non-taxable*…………………………………$ 0.00 Gambling Winnings Line 21……………………………………….. $20,000 Adjusted Gross Income (AGI)………….$20,000 Standard Deduction………………………$ 6,100 Personal Exemption Line 42………….$ 3,900 Taxable Income is $20,000 AGI, minus $6100, minus $3,900, equals Taxable Income Line 43………$ 10,000 Tax Due From 2013 Tax Table, Pub. 17, page 251, is**………………….$ 1,058 *You did not post the circumstances of your fixed income, your $20,000 win, or your age, or marital status. Your gambling winnings of $20,000 might make some of your fixed income taxable. Need more information. The IRS does have a payment program. Links: Pub 17 for 2013: http://www.irs.gov/pub/irs-pdf/p17.pdf
so here is the thing: did you won a jackpot of 18000? AT ONCE(single jackpot) or YOU THINK you won that amount lets say in the current years, so remember irs is very clear: slot machine jackpot over 1200 YOU pay taxes, Lottery over 600 YOU pay taxes, every time you get a W-2G form(wining gambling form) you have to pay taxes Reply
Hi there, I have had several jackpots paid to me through this year. On most of them I paid the taxes on the spot before they paid me. But a couple I didn’t. Anyways I absolutely lost more than I won for the year. I am a full time student, so there is no income except student loans. Should I expect to get the taxes I paid back since my losses were more than the wins? Reply
I was a stay at home dad this year, and have no income for 2012. I do have 2 jackpots totaling approx. $2800. I also have a dependent under age 16, (we have 4 kids, my fiancee would claim the other 3) that I could claim and a tax estimator said I would receive a return. Can I legally claim a dependent with no regular income and only gambling income? Since I had no regular income, would the IRS still tax these jackpots? How would that work? Also, can our children be split, dependent wise? (noting that we all lived in the same household for 2012,) Reply
I am on disability and Turbotax is showing that I owe nothing since my only earned income was the 1600 I had won at the casino. So do I still need to file? and if so why? Reply
i won 20,000 in casino in one state and live in another. they took out federal and state taxes. for which state did they take taxes? and do i get to claim those taxes? Reply
Hi Shawn, I am not sure how much your education expenses, but you can deduct them and you may possibly get a tax refund. You have to file a tax return since you have a W-2G. You can prepare your taxes with TurboTax for free so you can’t lose. You may get a nice tax refund. Happy filing! Thank you, Lisa Greene-Lewis Reply
How do I file my Ca. state return for 2009? I was on dissability the entire year so I have no tax liability for wages earned, however, I have $19,548.00 in casino winnings. With no taxable earned wages can I still show my gambling losses to equal my winnings? Reply
Hi Lynn, You still need to prepare your Federal Tax return. Your casino winnings will go on the federal tax return and if you can claim itemized deductions instead of standard deductions you can claim your losses or how much you put spent gambling there. Information from your federal tax return will transfer to your state tax return. TurboTax walks you through the questions necessary to complete your tax return. You can purchase 2009 TurboTax software at http://turbotax.intuit.com/personal-taxes/past-years-products.jsp#tax_year_2009 Hurry and file you only have 3 tax years to claim a tax refund with the IRS. Thank you, Lisa Greene-Lewis Reply
I reside in the state of Ohio and won $1500.00 on a slot machine in PA. Will I be liable for any taxes to the State of PA ? Reply
Hi I won money on the slots at the airport just before I came home to the UK and the machine stopped once I won and the assisant had to come with 2 others and they taxed me 30% of the win was news to me and a surpise, as I do not live in the US and I am a UK citizen who come I got taxed? I have won before and was never taxed so why this time? my bet was $2 and I won £1200 or ($1198) excluding my stake thanks for your help x Reply
I had lost my W-2 forms in a move from one house to another. I didn’t not file the amount I won do to not having the information. Now I have a letter from the IRS telling how much I owe, I want to send the letter back with my losses. What information will I need in the letter? Since all of my losses are not able to be tracked. Reply
I sometimes go gambling when out of town on business for my own company. Can I have my company ‘win’ the money if I win? Reply
Hi Richard, Unfortunately you have to claim your winnings on your personal taxes. Gambling winnings would not be considered income related to your business purpose. Thank you, Lisa Greene-Lewis Reply
hello. if i paid taxes on four slot pay outs (i paid state and federal irs taxes at the casino before being paid do i have to report anything else on other forms come tax time? will i have to pay any more taxes . also i am not claming any losses. thanks for your time? Reply
If the casino deducts 25% from the gross winnings before paying you the net. Then how do you get credit for this when filing your end of year 1040 …I don’t see any place on the W2G that says how much was withheld. It only shows the gross amount? Is the casino required to send you a 1099 or something? Reply
Hi Robert, Typically the 25% tax will be withheld before you’re paid so you will not see a credit for it. Your winnings are added to any other income you’ve earned on your tax return. You can deduct your losses or the amount you put in to gamble up to your winnings as an itemized deduction. Thank you, Lisa Greene-Lewis Reply
you do NOT get “credit” for 25%, that is something YOU MUST pay to uncle sam if you win unless you overpaid at the time the casino gave you the W-2G(and don’t forget the state too so you still might owe more) Reply
I paid 6,000 in taxes for 25% or so for about 15,000 in winnings. I didn’t pay 3,000 on other jackpots. I got about 15 in 4 months! Put it all back though:( Do I get the difference in my tax refund since I paid 6,000 and only didn’t pay 3,000? Or is there a chance I will owe some of the 3,000 I didn’t pay? Reply
Hi Brett, It also depends on your other income. You have to include all of your gambling winnings with your other income and then you are taxed at the tax rate of your combined income minus your tax deductions and credits. Without knowing all of your details I can’t say for sure. You can deduct your losses up to your winnings as an itemized deduction. Thank you, Lisa Greene-Lewis Reply
here is what will happens: You OVERPAID ONE of your W-2G(which is good irs WILL refund) BUT and here the catch since YOU DID NOT paid the other ones so now FROM EVERY W-2G that you have you have to pay ALSO the FULL amount 25 % Federal PLUS your State(depending where you live usually from 3 to 5%more), so to make it easy get a calculator and start to enter EVERY JACKPOT FROM THOSE W-2G FORMS that you did NOT paid taxes and see and cross your finger that they don’t add to more of what you ALREADY OVERPAID Reply
Why is it that turbo tax says I owe more money after entering my w2gs when my losses are equal (actually above) my winnings. Before I put in my w2s I owed $500.00. After entering my w2g and also my losses I owe alot more. Why does it not even out? Reply
Hi Dan, Your losses should have been entered as an itemized deduction, however your eligible losses are limited and may not be more than gambling income reported on your tax return. You also need to check and see if your itemized deductions are more than the standard deductions. If not, you will get the standard deduction, which will not include the gambling losses. Also keep in mind that tax deductions from taxable income do not reduce your tax liability dollar for dollar. TurboTax is in line with all IRS tax laws. Please see IRS Topic 419 for more information regarding gambling losses http://www.irs.gov/taxtopics/tc419.html If you still need more help, our tax experts are available via chat and phone. Thank you, Lisa Greene-Lewis http://blog.turbotax.intuit.com Reply
Hi ! I have won a jackpot on a slot machine. The amount is $1337.00. So the tax on that jackpot would be 25% of this amount? Thanks! Reply
Hi Debbie, Casinos will typically take 25% out of the winnings prior to paying you. The $1,337 will be added to your other income and will be taxed at your tax rate based on your total income. Thank you, Lisa Greene-Lewis http://blog.turbotax.intuit.com Reply
Even though I have lost much more than I win, I am paying Federal taxes on my winnings. The state of Ca. does not consider I won when I lost more than I won, but the Federal charges taxes even though I lost more than I won. Is this because the Federal taxes me on my total gross income before deductions?? Thank you. Jamie Reply
Hi Mr Rooster, If you are deducting your losses up to your winnings as itemized deductions, you have to remember that itemized deductions are not dollar-for-dollar deductions. They reduce your taxable income, but not your tax liability dollar-for-dollar. Thank you, Lisa Greene-Lewis Reply
One glaring error in your article – “you will owe the same percentage to the IRS on a $100,000 jackpot as a $10,000 one.” Since gambling winnings are considered the same as ordinary income, for the great majority of people the larger jackpot will put them in a higher bracket. Reply
Hi Gary, You are correct when you say gambling winnings are considered in the rest of your ordinary income and it may put people in a higher tax bracket, however the article refers to IRS rules that state “income tax is withheld at a flat 25% rate from certain gambling winnings” per IRS publication 505 http://www.irs.gov/publications/p505/ch01.html#en_US_2012_publink10007297 Thank you, Lisa Greene-Lewis http://blog.turbotax.intuit.com Reply
Lisa, the difference between withholding and tax owed is important. You either pay or get refunded that difference, after filing your tax return. There’s a small penalty for “substantial under-reporting” if you owe more than $1,000 at tax time, so you would have to make an “estimated tax” payment if the gambling winnings will make you owe more than that in tax. The 25% withholding rate is unlikely to be equal to the amount actually owed: depending on the size of the win and the taxpayer’s other income, the gambling winnings are likely to be in a higher income tax bracket.
If someone 82 years old won 2600.00 at a casino slot machine, do they have to pay taxes on that money Reply
Hi Becky, It depends on any other income and their deductions, but they should still file taxes on their winnings as gambling winnings are fully taxable and are required to be reported on their tax return. They can also deduct gambling losses if they itemize deductions, but the losses deducted cannot exceed gambling income. Thank you, Lisa Greene-Lewis Reply
Probably not. Depends on how the $2600 affects the “Combined Income.” In general, if the combined income for a single taxpayer is more than $25,000, then he/she may have income tax due. See: http://www.ssa.gov/planners/taxes.htm Your adjusted gross income + Nontaxable interest + ½ of your Social Security benefits = Your “combined income” Reply
Becky T., I jumped ahead on my answer above. Combined Income has to do with whether some of an 82-year-old’s Social Security would become taxable because of the $2600 slot machine win. For 2013, if the 82-year old only receives Social Security, and the $2600 slot win, and has no other income, then he/she will not pay any tax on that $2600 win, and will not be required to file a tax return. If the casino withheld tax on that $2600, then the 82-year old should file a tax return in order to get a refund of that amount withheld. Also, I strongly recommend that this person file a tax return for reasons I have stated in other posts on this webpage.
so if I won and paid my taxes can I declare my losses? how much do I need to loose to recoup the taxes I paid out? I won 2000 in Ohio and they took 6% state tax and 25% federal Reply
Hi Daniel, You have to input your winnings as other income and your wager as an itemized deduction. TurboTax will figure out how much you will be taxed based on other income, deductions, and your tax bracket. Thank you, Lisa Greene-Lewis http://blog.turbotax.intuit.com Reply
They are not required to give out the forms for table games because it is virtually impossible to determine (and prove) how much you actually won. You could walk up to the cashier with $25000 in chips…but how can they know that you didn’t shell out $30,000 to get those chips and lose $5000? And even if you did win, they still can’t make you pay taxes on the full $25,000 since you they know you spent SOMETHING to start off. It would make gambling a logistical nightmare if players required receipts every time they get down to their last chip and grudgingly plunk down another $500 to reload their stack at the blackjack table. Reply
Hi, Yes, per the post they are not required to give you a W2-G for certain table games, however you are required to report all gambling winnings. If you itemize your deductions, you can deduct your losses on schedule A. Please see IRS http://www.irs.gov/newsroom/article/0,,id=108277,00.html Thank you, Lisa Lewis http://blog.turbotax.intuit.com Reply
my auntie won $800k at an Indian casino recently in california. she got a check for 600K in the end , does she get taxed on the 600K or 800k? she did receive on site $40k initially then the 600k, she assumed that the taxes were deducted when she got the 600k since the check wasn’t for 800k but found out she still has to pay taxes. she is confused on what amount she will be taxed on and how much will she how to put aside for taxes? please advise. thanks! Reply
I need to know cab I deduct cost of dentures?? I would like to finish taxes having a problem because i started several months ago trying to get back to them a getting them done!!! Reply
Hi Don, Yes you can, however you to be eligible to itemize your deductions(itemized deductions have to exceed standard deductions) and your medical expenses have to be more than 7.5% of your adjusted gross income. TurboTax will guide you through the calculations and will choose the deductions (standard or itemized) you are eligble for. Happy filing! Thank you, Lisa Greene-Lewis Reply